DMN Examples Of How It Improves Business Decisions
Do you ever think about the process of making decisions? You make approximately 35,000 decisions every day, and for most of them, you probably don’t think about them at all. When you want to drink, your brain tells you to pick up a glass and sip from it.
However, when it comes to business decisions, it is never that simple. There may be several steps involved, from having meetings to analyzing data, getting feedback, and finally getting final approval.
While business decisions will never be automatic, there is a way that certain ones can be automated to get them as close as possible.
One of the issues of making decisions within organizations is that not everybody uses the same terminology, tools or even speaks the same language.
What is Decision Model Notation (DMN)?
Decision Model and Notation (DMN) is a set of standards that puts everyone on the same page.
All of the data floating around in databases that are part of a decision tree can be quickly translated and presented clearly for everyone. It can help take the guesswork, human bias and emotion out of the equation while also saving time and effort.
How is DMN Useful to Business?
DMN is especially useful for businesses and organizations that operate under regulations and laws for which they must comply, including:
- Financial institutions
- Government agencies
- Law offices
Decision making for these types of organizations must be unbiased and transparent. As regulations get more complex over time, a DMN model can help to ensure that organizations remain in compliance while also navigating complex decisions.
A common example is financial loans. In the past, when a customer approached a bank for a loan, they would examine that person’s history and financial situation and decide.
The loan officer may have been able to decide themselves, or they may have had to consult a manager. However, this created some issues. For one, the loan officer could decide based on personal feelings, or they may have been swayed by bribery or something else.
Nowadays, with DMN, the decision is mostly out of their hands. An applicant can enter their details through a portal, their information is checked by the software, and they are then approved or denied based on set factors and standards that humans cannot change.
This means that the decision to accept or decline was not only impartial, but a regulatory agency can easily check those standards created for the decision-making tool.
Not only that, but while the algorithms determine to accept or decline are complicated, entering the data for the user was simple. This DMN mode translated the lines of code into a clear and concise response for the user.
Certain business decisions are repeatable, and that should remain the same under certain conditions. When these conditions are met, the response should be “A.”
When the conditions are different, then the response should be “B.” There may be many different possible responses depending on how many possible conditions there can be.
Some of the biggest decisions a company can make are regarding price points. They can be hard to determine, and different factors can lead to different prices.
Sports teams charge certain amounts for seats located in specific sections of a stadium. Not only that, but they also charge differently based on who the opponent is. They can also change that pricing based on whether it’s generally a slow time of year for ticket sales or if they need to sell off ticket inventory.
Using DMN, they have made their pricing automatic but also fluid based on these factors.
A sports fan can go online, enter in a date to buy tickets, and they will get a price. They would get a different price if they tried to buy tickets for another game against a different opponent.
DMN makes these decisions quickly and in real-time so that the results are seamless.
The trick to DMN is to get it up to get the outcomes you want.
A DMN model is only as good as the parameters that are set for it. The loan calculator must know what to do should an applicant’s credit history and financial situation be at a certain level. This can be hard, especially for companies that do not employ coders. A DMN engine can do that work for you.
You can pick and choose from various models and insert them into your decision-making process. They can be edited to suit your needs and then embedded on your website or whatever platform you need to evaluate.
Essentially, you need the right DMN engine to provide you with the right automated decision tree to make complicated decisions. By using engines, you will have templates from which to start the process.
Many decisions need to be made by organizations and businesses daily. Some of them involve customers, and some involve internal processes.
By automating these directions, you can make it easier and faster for everyone.
A DMN engine can help you with the process by quickly creating a decision tree and having it ready for use in no time.
With DMN, complicated decisions can take a matter of seconds, and the results will be clear and transparent to everyone.